6tionA $3,000 computer is sold before the end of its useful life for 10% more than itssalvage value of $800. Which of the following the firm needs to report for taxaccounting purposes?A) Depreciation recaptureB) IncomeC) Capital gainD) Loss

1. Original Cost of the Computer: $3,0002. Salvage Value: $8003. Selling Price: 10% more than…

Answered: 6 tion A $3,000 computer is sold before…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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2.17 (LG 2.6) An asset costs $14 000. At a depreciation rate of 20 percent, calculate its book value using the declining-balance method: a. After one year b. After four years c. After seven years
What's the depreciation?
Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
16. ABC Co.'s biological asset has a fair value less costs to sell of P 100,000 and P120,000, respectively. The year-end adjusting entry will most likely include a. a credit to unrealized gain of P 20,000 to be recognized in profit or loss b. a credit to unrealized gain of P 20, 000 to be recognized in other comprehensive income c. a debit to unrealized gain of P 20,000 to be recognized in profit or loss d. none of these
Note: Double Declining Balance = 200% Declining Balance A. How much is the depreciation for year 3? Select one: o a. P158,203.13 o b. P150,000 o c. P210,937.50 o d. P187,500 В. How much is the total depreciation as of year three using DDB method? C. What is the equipment's book value at the end of year three?
7. Germs Co. determined the following information for the 24,000,000 Revaluation model - Cost approach purpose of revaluing its building: Historical cost Accumulated depreciation 7,680,000 8 years Actual life 32,000,000 On 5 years P4, 20 years Replacement cost Effective life Remaining economic life Depreciation method SLM ife 30% th Income tax rate Requirements: a. Compute for the revaluation surplus, net of tax. b. Provide the entry to record the revaluation surplus using () Proportional method and (2) Elimination method. c. Determine the revised Re annual depreciation after tre revaluation.
Requirements: HOW MUCH IS THE REVALUATION SURPLUS ON THE YEAR OF REVALUATION? HOW MUCH IS THE GAIN OR LOSS IF THE BLDG IS SOLD FOR P8MILLION ONE YEAR AFTER REVALUATION? HOW MUCH IS THE BLANCE OF REVALUATION SURPLUS AFTER THE SALE?
A company purchased a machine at £200,000 and sold it after 12 years of use for £40,000. If the cost of capital is 10%, what is the amount by which the asset has to be amortised (written-off) after the first year of asset use when the sinking fund method of depreciation is applied? Question 14Answer a. £1,125 b. £2,525 c. £7,488 d. £2,835
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8. A plant asset with a cost price of R900 000 and accumulated depreciation of R800 000 was sold for R80 000. What is the profit or loss on disposal of the asset? A. R20 000 loss B. R20 000 gain C. R80 000 gain D. R80 000 loss
A fixed asset with a cost of $26,000 and accumulated depreciation of $23,400 is sold for $4,420. What is the amount of the gain or loss on the sale of the fixed asset? Oa. $2,600 loss Ob. $2,600 gain Oc. $1.820 loss Od. $1,820 gain Previous Next 7:04 PM 12/11/2020 18 a
At the end of its financial year, Tanner Co had the following non-current assets: Land and buildings at cost $10.4 million Land and buildings: accumulated depreciation $0.12 million Tanner Co decided to revalue its land and buildings at the year-end to $15 million. What will be the value of the revaluation surplus if the revaluation is accounted for? %24

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6 tion A $3,000 computer is sold before the end of its useful life for 10% more than its salvage value of $800. Which of the following the firm needs to report for tax accounting purposes? A) Depreciation recapture B) Income C) Capital gain D) Loss